REHDA Applauds 100% Financing for First Time Home Buyers

Petaling Jaya, 9 March 2011

REHDA lauds the effort of the Prime Minister in partnership with 25 financial institutions and banks in working towards improving affordability and ease of home ownership through the My First Home Scheme, which is designed for single adults and households earning no more than RM3,000 intending to purchase houses priced between RM100,000 and RM220,000. REHDA views this as a very innovative initiative, as we are not aware of any other country in the world where Government supports home ownership by guaranteeing the loans taken by the purchaser.

This would certainly go a long way in assisting young adults of that income size on that budget. However our record shows that there are not many properties priced below RM220,000 in the Kuala Lumpur and Selangor area, which are the urban centres of population growth and migration, and having the highest number of young working adults. The demand for housing is also greater compared to other States.

In line with the Government's efforts to promote home ownership, REHDA appeals to the Government to also consider assisting young adults migrating to Kuala Lumpur and Selangor from other States, by reviewing the property price limit to RM350,000 for the Klang Valley. Also, the stakeholders, especially the local authorities, may need to review planning acts to facilitate development of smaller units or starter homes. The conditions may include relaxation on car park requirements where there is convenient transportation and higher plot ratio to encourage more affordable priced starter units.

Issued by:

Datuk Seri Michael KC Yam SMW, DSNS
President
Real Estate and Housing Developers’ Association Malaysia